Question: Executrain has 50,000, 8%, bonds outstanding for the second half of the year. Each $1,000 bond, sold July 1 at par, is convertible into 20

Executrain has 50,000, 8%, bonds outstanding for the second half of the year. Each $1,000 bond, sold July 1 at par, is convertible into 20 shares of common stock. The corporate tax rate is 40%. What is the incremental income per common share from the convertible bonds?

A.$1.20

B.$4.00

C.$12.00

D.$2.40

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